Waterways puts much emphasis on cash flow when it plans for capital investments, The company chose its discount rate of 8% based on the rate of return it must poy its owners and creditors, Using that rate, Waterways then uses different inethods to determine the best decisions for malaing capital outlays. This year Waterways is considering buying five new backhoes to replace the backhoes it now has. The new backhoes are faster, cost less to run, provide for more accurate trench dieging, have coinfort features for the operators, and have 1 -year maintenance agreements to go with them. The old backboes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skils to use the new bxckhoes. The following information is available to use in deciding whether to purchine the new backhoes. (a) Evaluate in the following ways whether to purchase the rew equipment or overhaut the old equipment. (Hint: For the old machine, initial cost of the investrente] (1) Using the nett present value method for buying new or keeping the old, ifor calculation purpases, use 5 decimal places as disployed in the factor table provided. If the net present volue is negative, use either a negative sign preceding the number 8.45 or parentheses 69 ( 45 ) Waterwant thould cquipenkent 2 decinal ploces, es, 2.25) Wuterwershould equipinent Waterwans should expignem